President-elect Donald Trump has issued a stern warning to the BRICS nations, threatening to impose a 100 percent tariff on their exports if they take steps to undermine the dominance of the US dollar.
“We demand a commitment that they will neither establish a new BRICS currency nor back any alternative currency to challenge the US dollar. Otherwise, they will face 100 percent tariffs,” Trump wrote on his Truth Social platform, addressing the group that includes Brazil, Russia, India, China, South Africa, and other member nations.
Trump’s statement follows the recent BRICS summit held in Kazan, Russia, where member states discussed enhancing non-dollar transactions and promoting the use of local currencies.
The BRICS coalition, which has grown significantly since its formation in 2009 to include nations such as Iran, Egypt, and the United Arab Emirates, now represents a substantial portion of the global economy.
At the October summit in Kazan, a joint declaration emphasized strengthening correspondent banking networks within BRICS and advancing settlements in local currencies through the BRICS Cross-Border Payments Initiative. However, Russian President Vladimir Putin later acknowledged that there had been little progress on developing an alternative to the SWIFT financial messaging system.
“As for SWIFT and any alternatives, we have not created or are working on creating alternatives,” Putin said, adding that discussions about a unified BRICS currency were not currently on the agenda.
Trump reiterated his protectionist stance, promising to impose heavy tariffs on nations he views as economic competitors.
If BRICS countries continue pursuing such plans, Trump warned they could “say goodbye to selling into the wonderful US economy.” He further stated, “They can find another ‘sucker.’ The BRICS will never replace the US dollar in international trade, and any country attempting to do so should bid farewell to America.”